Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
Is bitcoin more preferred as compared to gold? Has gold lost its charm and shine because of bitcoin? In history, gold is the only valuable asset that has grown tremendously, but today the story is entirely different. As of September 2021, gold’s value is down by 9%, and other investments like dollars, equities, and real estate have exploded in the market. The most surprising thing is that the value of bitcoin moves along with gold and precious metals, but how has it grown when gold was down?
It is because of the recession period that is going on. A recession is a course of action where people use gold as a solid hedge against the stock market’s volatility. But today, people are moving towards the new approach: a true safe-haven asset known as bitcoin. Yes, it is pretty shocking, but bitcoin has proven highly effective in all these years. Bitcoin got invented in 2009, and it marked the starting of a new era in cryptocurrencies history. As a result, many crypto exchanges have developed and simplified the concept of buying and selling cryptocurrencies. As a result, Bitcoin gained appreciation from investors and traders across the world. Users can start trading bitcoin through ethereum-trader.app.
Bitcoin is a dominant cryptocurrency as it possesses multiple characteristics of traditional currencies and has different characteristics that make it different from others. It is why bitcoin is considered a feasible shelter. However, it entirely depends on investors considering bitcoin as a haven asset or a risky asset according to market conditions. For example, gold is moving sideways because of bitcoin, and digital currencies have experienced a tremendous resurgence in the past two years. Therefore, there arises confusion whether gold makes a significant investment or bitcoin?
Gold: All-Time Safe Haven Asset
Gold has been here for thousands of years, and it is known as a haven and reliable asset. The main reason people consider gold as a reliable asset is that it offers natural protection and gets tested many times. Bitcoin has not been around during financial crises like the Great Depression, where people took shelter under gold and invested all their savings in avoiding the crisis. Even pension funds, central banks, government organizations, and wealth management offices have invested a large portion of their funds or savings in gold.
Why is gold’s value decreasing?
After gold, its value has never slowed down, but gold prices have been like the share market recently. Earlier, people trusted precious metals because they had a stable and steady value, but it may be prudent to invest your funds in gold when the market is highly volatile. For example, it might be possible that gold prices will increase because of inflation, making it the best hedge against inflation again. But when the price of gold increases, the value of fiat currencies decreases. According to this, bitcoin is a digital asset with great potential for long-term and short-term investing, but it is growing slowly compared to other assets or gold.
India is one of those countries where many investors have experienced a significant boost in the bitcoin industry. It has become possible because crypto exchanges enable users to invest digitally in all the cryptocurrencies and trade them from their own homes without going outside. So are cryptocurrencies the future of monetary exchange?
Bitcoin – Digital Gold
Today, bitcoin is the most popular and valuable digital currency globally in terms of its market capitalization. Unlike the stock market, the crypto market operates 24/7, which allows traders to trade cryptos from exchanges 24 hours, seven days a week. Another main reason behind the surge in the value of bitcoin is its finite supply. The supply of bitcoin gets limited to 21 million bitcoins, and it can never get increased or decreased. Bitcoin is known as digital gold because it has many similar properties as gold. It doesn’t get printed or issued by the government or central banks.
A group of individuals known as miners use their computational power to mine bitcoins collectively and earn rewards in exchange for their efforts, time, and computing power.
